Which of the Following Best Explains the Term Specializationwith Respect

question 68

Multiple Choice

Which of the following best explains the term specializationwith respect to trade?

• A)Specialization occurs when a people concentrate their productive resources on the goods and services they can
• Produce most efficiently.
• B)Specialization occurs when one person can produce more of a particular good than another person.
• C)Specialization refers to the absolute advantage that a person enjoys in the production of goods and services.
• D)Specialization refers to the ability of a person to produce more of a good than his or her trading partners.

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Definitions:

Multinational Companies

Corporations that operate and have assets in more than one country, engaging in global business activities.

Intermediate Product

Goods that are used as inputs in the production of other goods and services, not destined for the final consumer.

Gross Private Domestic Investment

The total amount of capital investment in domestic assets by the private sector, including expenditures on physical assets like machinery, buildings, and equipment.

Expenditures Approach

A way of computing GDP by adding up the dollar value at current market prices of all final goods and services.